Asian Shares Mixed; Nikkei Boosted By Weakening Yen

Asian stocks turned in a mixed performance on Thursday amid rising tensions in the Middle East due to the conflict between Iran and Israel.

Japanese markets outperformed regional peers after Prime Minister Shigeru Ishiba said the country is not in an environment for an additional rate increase.

The U.S. dollar hit a more than six-week high against the yen and gold edged lower following stronger-than-expected U.S. private payroll data released overnight.

Oil prices surged for a third day running on worries over potential disruptions in crude flows from the Middle East region.

Mainland Chinese markets remained closed for a week-long public holiday. South Korean markets were also closed for the National Day holiday. Hong Kong’s Hang Seng index dropped 1.47 percent to 22,113.51, with real estate and tech stocks leading losses.

Japanese markets rallied and the yen extended its drop as Prime Minister Ishiba and Bank of Japan Governor Kazuo Ueda downplayed the likelihood of an interest rate hike soon.

Investors also digested survey data that showed Japan’s service sector activity expanded for the third straight month in September, although growth eased slightly.

The Nikkei average surged 1.97 percent to 38,552.06 while the broader Topix index settled 1.20 percent higher at 2,683.71. Automakers Honda Motor, Toyota, Mitsubishi Motors and Nissan climbed 1-2 percent.

Australian markets ended on a flat note as miners advanced, offsetting losses in the energy sector.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index rallied 0.97 percent to 12,572.66.

U.S. stocks ended marginally higher overnight as signs of escalating geopolitical tensions in the Middle East offset data from payroll processor ADP showing stronger than expected private sector job growth in September.

The Dow, the tech-heavy Nasdaq Composite and the S&P 500 all ended flat with a positive bias.